COMNET and Group 1 discussing a merger

Maryland Watch

December 12, 1997

COMNET Corp. owns 81.2 percent of Group 1 Software Inc. Now it's seeking the rest of the software company. The two firms, both based in Lanham, announced yesterday that they TC have begun merger talks.

COMNET, a holding company that works with no other firms besides Group 1, would be the successor company in the merger, but the combined entity would take Group 1's name.

Mark Funston, Group 1's chief financial officer, said no job losses would result from the merger. Group 1 has about 300 employees in Lanham, while COMNET has about 30.

Funston said the merger negotiations will likely be concluded within 45 days. He said he anticipated that the merger will be approved and finalized by the end of March.

James Manning, the chairman of COMNET's board, would be the chairman of the new Group 1. Robert Bowen, the current Group 1 chairman and chief executive officer of both companies, would be the CEO of the merged firm.

Shares in COMNET lost 12.5 cents yesterday to close at $7; Group 1 shares were unchanged at $7.75.